Mistakes to avoid selling a business
Here are another 5 mistakes to avoid when selling a business.
Selling a business comes with complexities so keeping it simple always helps.
1. Assuming you know what the buyer wants.
Buying a business is a unique experience with every transaction unique. Assuming you understand the needs, wants and motivations of a buyer is a bad practice as a smart buyer will not reveal their true motivations.
2. Failing to understand the buyer’s objectives and if the business meets their needs.
Assuming you know what the buyer wants is totally different to clearly understanding what the buyer wants to know from you and whether or not this is the right business for them to buy. If you can meet the criteria the buyer gives you…you are on your way even though the criteria may not ultimately be what the buyer says to you.
3. Improper pre-sale planning and failing to be organized.
There are so many steps to selling a business. Being organized and having all the right processes in place is a starting point to try and be successful.
4. Answering the question before it is asked.
Be careful to understand the question and then provide the right answer. You may be answering a different question than the buyer is asking…and that can be good or bad.
5. Not allowing the buyer to feel some sense of control in the decision making process.
The standard practice is for all parties to try to control the process. Most deals collapse because one party doesn’t truly understand what the other party is asking. Alternatively, if the question was understood the clarity would apply both parties to continue working together as this is critical in any process.
Buying or selling a business comes with personal emotional and financial risk as well as the complexities of finance, accounting, tax, negotiation and legal items. Having a professional agent or intermediary to help “quarterback” and manage the variables is good business. Here are some attributes to look in the intermediary that you choose.